Structural changes to a community are a costly endeavor. Don't let the price tag of creating change scare you from building a better community. Rather, be creative about money sources and remember "Yes we can!"
- Charles Grosenick, Co-Author, BRIGHT
This chapter focuses on ways to fund your Corridor Project. The tools listed below are only a starting point. It often helps to think creatively for additional funding opportunities. Remember, where there’s a will, there’s a way!
Key Takeaways
Think about your community’s unique strengths and how to create a strategic vision for well-managed development
Consider the ways that financial resources can be combined to give you the greatest leverage and flexibility
Examine how revenue-bearing end uses can help fund your long-term revitalization project
Financial tools and sources include tax credits, bonds, grants, foundations, private investments, state and local energy credits, state and local green infrastructure initiatives etc.
One of the most important aspects of any Corridor Project is obtaining the necessary funds. This chapter will explain different opportunities available to communities to raise these funds. While communities are often able to raise small amounts of capital from crowdfunding, successful Corridor Projects almost always require outside financing due to the cost.
Don’t let this necessity be an impediment to creating a more beneficial community through your Corridor Project. Rather, think about your community’s competitive advantages and how to create a strategic vision for well-managed development. Think “what do we want to be” rather than “how do we pay for it.”
One way to think about this is to choose a location for the revitalization project that bridges areas of the city together. More foot traffic=more business=more money. Once you create the vision, accept input rather than substitutions. Let this chapter guide you through the opportunities available at your disposal.
While reading this chapter, think about the ways these financial resources can be combined to give you the greatest financial leverage and flexibility. Think about how one large source of funding can be used to draw additional sources of financing and how these financial resources can decrease the financial risk of one (or more) financial sources failing to materialize.
One example is to obtain a large anchor tenant (such as a grocery store) in a shopping center. This anchor tenant draws in other tenants, and in turn these additional tenants will make it easier for you to obtain loans from financial institutions and decrease the risk associated with one of the tenants walking away.
Another aspect to examine is how the end uses in your community can fund your revitalization project. For example, creating a water reclamation plant can lead to financing through potential grants and tax credits as seen below, while also enticing banks, foundations, and environmentally friendly organizations to invest in your community. This approach can maximize community resources by generating additional outside capital which reduces the necessity for communities to fund every aspect of a revitalization plan.
In addition, collecting data on the process (initial investment, projected profit per tenant, etc.) will greatly increase the likelihood that you successfully finance your community revitalization project. This data should be kept in a budget which is regularly updated. Some examples can be found here:
A strong community revitalization financing plan incorporates the following:
Form a multi-sector team - This may include participants from public, private, community investment, philanthropic, and civic sectors. It also requires you to build the policies, processes, mechanisms, and incentives that facilitate community investment
Integrate new stakeholders - Identify and recruit institutions/individuals that fill funding or knowledge gaps
Secure new resources for community investment
Align resources and attention - Ensure there is a coherent, community-endorsed vision to shape investments. Keep in mind that actors maximize their contributions to the redevelopment process as a whole
Provide data (transparent and accessible)
Advocate for supportive policies - For example, support policies and practices that advance community investment priorities. Additionally, generate deals and projects that together add up to the realization of the community’s strategic priorities. Direct money to highest priorities
Last, don’t be afraid to break up your revitalization plan into smaller units. Often it is easier to complete smaller individual projects than one large revitalization plan.
This section lists financial tools you can use to raise money to support community revitalization.
Obtain land/property provided below market value
One way to decrease the funds needed for a Corridor Project is by purchasing land located within the confined of the Corridor Project below market value. This will provide you with additional funds for different aspects of your Corridor Project.
Tax Credits
A tax credit reduces your taxes owed. Unlike deductions, which reduce the amount of taxable income, tax credits reduce the actual amount of tax owed. Tax credits are extremely beneficial because they allow you to use more money on your community revitalization project by paying less tax.
The video below breaks down the differences between a tax credit and a tax deduction.
Below you'll find a list of various types of tax credits:
Investment Tax Credits: The Investment Tax Credit (ITC) is currently a 26 percent federal tax credit claimed against the tax liability of residential and commercial and utility investors in solar energy property.
Renewable Electricity Production Tax Credit: The Renewable Electricity Production Tax Credit is a per kilowatt-hour (kWh) federal tax credit included under Section 45 of the U.S. tax code for electricity generated by qualified renewable energy resources. It provides a $0.023/kWh tax credit for electricity produced by wind, close-loop biomass, and geothermal energy sources (lower tax credits for open-loop biomass landfill gas, municipal solid waste, qualified hydroelectric, marine, and hydrokinetic resources). The video below breaks down Solar Tax Credits.
New Market Tax Credit: There are tax credits up to 39% of original investment over seven years for investment in distressed communities. This is designed to stimulate wealth generation in distressed communities by expanding the availability of credit, investment capital, and financial services. Community Development Entities (CDE) first apply competitively for an allocation from the tax credit pool. Then it offers these tax credits to private sector investors. The investor receives stock or capital interest in the CDE as well as 39% tax credit on the amount of their investment, spread over seven years, during which period they may not redeem their stock. The CDE must in turn use the money obtained from this process for qualified low-income community investments such as: investing directly in local businesses; purchasing technical services for local business; loans or investments in real estate projects including brownfields cleanup and redevelopment.
Low Income Housing Tax Credit: These credits are given to developers of affordable housing units and enable them to raise capital by selling off the tax credits to investors. The tax credits are paid annually for 10 years. Regarding funding, the credits can be either 9% or 4% of the cost of the development, depending on whether or not there are other federal subsidies (i.e., if 4% of cost of development is 100K, then payout would be 10K for ten years = 100K).
Historic Rehabilitation Tax Credit: Offers private investors a tax credit to be claimed in the year in which the renovated building is put into service. One tax credit exists for the restoration of a certified historic property (up to 20% of cost of the work) and another for rehabilitation of an old but non-certified property in service before 1936 (up to 10% of cost of the work). This can be combined with other tax credits and grants. Regarding funding, the credits can be 20% or 10% of the development cost
Energy-Efficient Commercial Buildings Tax Deduction: A tax deduction of $1.80 per square foot of a building (new or existing) with a system that reduces the building’s total energy and power cost by 50% or more in comparison to a building meeting certain minimum requirements. Deductions of $.60 per square foot are available for buildings with energy efficiency measures but don’t meet the 50% threshold. Deductions are taken in the year construction is completed.
Renewable Electricity Production Tax Credit: Reduces federal income taxes for the owners of renewable energy projects based on kWh at a rate of 2.3 cents/kWh (after indexing for inflation) or half that, depending on the technology.
Renewable Energy Bonus Depreciation Deduction: Enables a bonus depreciation since some renewable technologies are classified as a five-year property. Bonus depreciation is a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets, such as machinery, rather than write them off over the "useful life" of that asset.
Production Tax Credit and Investment Tax Credit for Wind: The Production Tax Credit (PTC) provides a tax credit of 1¢–2¢ per kWh for the first 10 years of electricity generation for utility-scale wind. The alternative Investment Tax Credit (ITC) provides a credit for 12%–30% of investment costs at the start of the project and is especially significant for the offshore and distributed wind sectors because such projects are more capital-intensive and benefit from the up-front tax benefits. In December 2019, Congress passed extensions of the PTC and ITC.
Sales tax
Hotel tax
Property tax
Tax increment redevelopment zones
Bonds
A bond is a loan of sorts. Cities and municipalities can create bonds and sell them to investors to generate money, but they will need to be paid back over time. Often, an outside party needs to be hired to facilitate the creation of a bond. Guides for this process are found at: Bond Guide for Municipalities; Issuing Municipal Bonds; and Steps to Issuing a Municipal Bond.
Municipal Bonds
Bonds are a type of debt security used to finance public service projects (often exempt from taxes). [The examples below have been used by the DC government]
Industrial Revenue Bonds (tax exempt): These can be used to finance, refinance, and reimburse the cost of constructing real property and related subordinate facilities.
Green Bonds: These are issued to finance qualifying green investments. The minimum bond amount is $5 million. Green bonds are tax-exempt bonds issued by federally qualified organizations or by municipalities for the development of brownfield sites. The tax-exempt status makes this bond more attractive to investors compared with taxable bonds. Most green bonds are issued to finance renewable energy and energy efficient transportation. Integrating solar panels or transportation projects into Corridor Projects could allow planners to take advantage of this financing source. To qualify, the development must be any of the following: at least 75% of the building is registered for LEED certification; LEED certification is a rating system created by US Green Building Council to measure environmental impact of buildings; the development project will receive at least $5 million from the municipality or state; or the building is at least 1 million square feet or 20 acres in size.
Types of Green Bonds include: Green “use of proceeds” Bonds (proceeds raised by bond sale are earmarked for green projects); Green “use of proceeds” Revenue Bond (proceeds raised by bond sale are earmarked for green projects); Green Project Bond (proceeds raised by bond sale are reserved for the specific underlying green project); Green Securitized Bond (proceeds raised by bond sale are either earmarked for green project or goes directly into the underlying green project)
Tax Increment Financing: This allows the sale of bonds backed by the increase in tax revenue associated with the redevelopment activities within a specified area. A developer can often finance up to 20% of project using this method.
Payments in Lieu of Taxes: This allows the issuance of bonds to finance development projects.
Property Assessed Clean Energy: This provides 100% financing for qualifying clean energy and water conservation projects with no upfront costs (20-year payback period with fixed interest rates.
To illustrate, the city of San Francisco used a municipal bond to fund a portion of its area-wide plan. The city sought the completion of the Blue Greenway project in an effort to create public open space and water access along the waterfront in southeast San Francisco. In order to fund this project, and several others, the city used the Parks General Obligation Bonds, which included $78.5 million for the Port of San Francisco waterfront projects. The bond specifically allocated $39.5 million to the Blue Greenway project.
Revolving Loan Funds
These are fixed rate and low-interest loans as a gap-financing tool for economic redevelopment projects.
Grants
A grant is a financial award given to fund some type of beneficial project. A grant does not need to be repaid but has specific requirements (often based on how the money will be used). Before applying for a grant, make sure that you meet these specific requirements. If awarded a grant, you may need to follow certain requirements reporting what you spent the funds on and how that money is supporting a beneficial project. A good starting point for learning more about grants and the grant application process is Grants 101.
Below is a non-exhaustive list of different types of relevant grants:
Public Works Program and Economic Adjustment Assistance Program: This is used to construct or rehabilitate public infrastructure and facilities that are essential to job creation and economic development. Grants can be provided to support business incubators, industrial parks, and utility infrastructure needed for a private development, among other uses. Grants generally require a 50% local cost share. Can be provided to local governments or non-profits. Award floor of 100K and ceiling of 3 million.
FY 20 Coronavirus Aid, Relief, and Economic Security Act: $1.467 billion in Coronavirus Aid, Relief, and Economic Security (CARES) Act funding was available to eligible grantees in communities impacted by the coronavirus pandemic.
U.S. Economic Development Administration (EDA) Planning Program and Local Technical Assistance Program: EDA assists eligible recipients in developing economic development plans and studies designed to build capacity and guide the economic prosperity and resiliency of an area or region. The Planning program helps support organizations, including District Organizations, Indian Tribes, and other eligible recipients, with Short Term and State Planning investments designed to guide the eventual creation and retention of high-quality jobs, particularly for the unemployed and underemployed in the United States’ most economically distressed regions. As part of this program, EDA supports Partnership Planning investments to facilitate the development, implementation, revision, or replacement of Comprehensive Economic Development Strategies, which articulate and prioritize the strategic economic goals of recipients’ respective regions. The Local Technical Assistance program strengthens the capacity of local or State organizations, institutions of higher education, and other eligible recipients to undertake and promote effective economic development programs through projects such as feasibility studies and impact analyses.
Disaster Supplemental Notice of Funding: $587 million is available to eligible grantees in communities impacted by natural disasters in 2018 and Floods and Tornadoes in 2019. $587 million is available to eligible grantees in communities impacted by natural disasters in 2017.
Research and National Technical Assistance: $1.5 million is available for Research and Evaluation (R&E) projects. R&E program investments provide critical, cutting-edge research and best practices to regional, state, and local practitioners in the economic development field, thereby enhancing understanding and implementation of economic development concepts throughout the country. $1 million is available for National Technical Assistance (NTA) projects. These projects support best practices among communities trying to solve problems related to economic development goals. By working in conjunction with its national technical assistance partners, EDA helps States, local governments, and community-based organizations to achieve their highest economic potential. The NTA program supports activities that are beneficial to the economic development community nationwide and includes, but is not limited to, outreach, training, and information dissemination. It can also aid with implementation of economic development best practices and proven techniques.
Land Reuse Health Program: Various grant and funding opportunities for the revitalization of brownfield properties
Department of Health and Human Services
Community Services Block Grant Program: The Community Services Block Grant funds a network of community action agencies that provides services and activities to reduce poverty, including services to address employment, education, better use of available income, housing assistance, nutrition, energy, emergency services, health, and substance abuse needs.
Community Economic Development Program: A federal grant program funding Community Development Corporations that address the economic needs of low-income individuals and families through the creation of sustainable business development and employment opportunities.
Department of Housing and Urban Development
Community Development Block Grant Programs: These are annual grants to states, cities, and counties to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunities, principally for low- and moderate-income persons.
Section 108 Loan Guarantee Program: This provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects. Communities can use Section 108 guaranteed loans to either finance specific projects or to launch loan funds to finance multiple projects over several years.
Sustainable Communities Initiative: This initiative is run out of the Department of Housing and Urban Development (HUD) Office of Economic Resilience. Its purpose is to stimulate more integrated and sophisticated regional planning through funding and coordination. Most relevant are Sustainable Communities Regional Planning Grants (non-profits eligible) and the community challenge grants (only governments eligible).
Fixing America’s Surface Transportation Act: This combines several old programs and broadly covers funding for alternative methods of transportation as well as some community improvement.
Environmental Protection Agency
Brownfields Assessment Grants: This grant supports the investigation and assessment of properties and reuse planning.
Brownfields Community-wide Planning Grants: This grant is appropriate when a specific site is not identified and the applicant plans to spend grant funds on more than one brownfield site in its community. Up to $300,000 is available to assess sites contaminated by hazardous substances, pollutants, contaminants (including hazardous substances co-mingled with petroleum), and/or petroleum.
Assessment Coalition Grant: Assessment Coalitions are designed for one “lead” eligible entity to partner with two or more eligible entities that have limited capacity to manage their own EPA cooperative agreement. The lead coalition member may submit one grant proposal under the name of one of the coalition members and will perform assessment grant activities in each coalition member’s community. May request up to $600,000.
Site-specific Assessment Grants: A Site-specific Assessment Grant is appropriate when a specific site is identified and the applicant plans to spend grant funds on this one site only. You may request up to $350,000 with a waiver.
Brownfields Cleanup Grants: Cleanup Grants provide funding for eligible entities to carry out cleanup activities at brownfield sites. An applicant must own the site for which it is requesting funding. The performance period for these grants is three years.
Brownfields Revolving Loan Fund Grants: These include grants up to $1,000,000 to state or local governments to capitalize a revolving loan fund, which can be used to provide sub-grants to local governments or non-profits or make loans to entities, public and private, in order to support cleanup activities.
Environmental Workforce Development and Job Training Grants: These include grants up to $200,000 for recruiting, training, and placing low-income and minority residents of communities affected by hazardous waste sites. Participants receive training in the skills to secure full-time, sustainable employment in the environmental field and in the assessment and cleanup of brownfields in their own communities.
Multipurpose Grants to States and Tribes: Multipurpose funds are intended to be used at state and tribal discretion, for high-priority activities to complement activities funded under established environmental statutes. While EPA encourages grantees to consider using funds to address per- and polyfluoroalkyl substances, grantees are not required to do so, and may direct the funds to their highest priorities. For states and territories, funding is available to agencies that implement the categorical grant programs. For tribes, funding is available to tribes that have been delegated federal regulatory authority through the treatment in a similar manner to a state (TAS) process, and tribes approved to operate certain environmental regulatory programs through non-TAS approval provisions found in federal environmental statutes and regulations.
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) 128(a) Grant Funding: A noncompetitive $50,000,000 grant program to establish and enhance state and tribal response programs. States then allocate the money.
The Environmental Justice Collaborative Problem-Solving Cooperative Agreement Program: This program provides financial assistance to eligible organizations working on or planning to work on projects to address local environmental and/or public health issues in their communities, using EPA’s “Environmental Justice Collaborative Problem-Solving Model.”
Clean Water State Revolving Fund: Each state maintains a revolving loan fund to provide a source of low-cost financing for water quality infrastructure projects. States set the funding priorities.
Urban Waters Small Grants Program: This program aims to fund research, investigations, experiments, and surveys that advance restoration of urban waters.
Building Blocks for Sustainable Communities: This program provides quick, targeted technical assistance to selected communities using tools that are designed to address a variety of challenges in many different local contexts. The purpose of delivering these tools is to stimulate a discussion about growth and development and strengthen local capacity to implement sustainable approaches.
The Environmental Justice Collaborative Problem-Solving Cooperative Agreement Program: This program offers financial assistance to eligible organizations working on or planning to work on projects to address local environmental and/or public health issues in their communities, using EPA's “Environmental Justice Collaborative Problem-Solving (CPS) Model.” The CPS Program assists recipients in building collaborative partnerships to help them understand and address environmental and public health concerns in their communities. It requires selected applicants, or recipients, to use the EPA’s Environmental Justice Collaborative Problem-Solving Model as part of their projects. The model aims to address local environmental and/or public health issues in a collaborative manner with various stakeholders such as communities, industry, academic institutions, and others. The program awards up to $120,000.
The agency supervises the Federal Home Loan banks, cooperatives that lend money at low interest rates to member financial institutions (big banks to local community banks), which in turn lend the money to local communities for development projects. Each of these banks sets aside 10% of their net income to fund affordable housing through grants and low-cost loans.
US Forest Service
The Urban and Community Forestry Program supports forest health for all of our Nation’s forests, creates jobs, contributes to vibrant regional wood economies, enhances community resilience, and preserves the unique sense of place in cities and towns of all sizes. By working with our state partners to deliver information, tools, and financial resources, the program supports fact-based and data-driven best practices in communities that maintain, restore, and improve the more than 140 million acres of community forest land across the United States. Both technical assistance and funds are available.
These two programs make and guarantee loans to small businesses.
Community Block Grants
These grants provide funding directly from governments (federal, state, local) to preserve affordable housing, provide services to vulnerable sections of the community, and generate jobs.
These grants are found throughout the country and are used to support and encourage reinvestment in downtown and neighborhood business districts.
Example of Grant Funding
The Commerce Corridor redevelopment plan in West Virginia is an example of an area-wide plan that utilized several federal grants to obtain funding. A 1.5 mile strip of brownfield sites, from industry leaving the area, ran through Ranson and Charles Town, West Virginia. The cities convened the Commerce Corridor Council, made up of residents, local government officials, and business and property owners, to revitalize the area as a mixed-use space for economic development, community centers, and green spaces.
The redevelopment of the brownfield sites began with the Corridor receiving grants from the EPA for site assessments. Between the tow cities, the Corridor also received all three grants available in the Obama Administration's Partnership for Sustainable Communities, including a Brownfields Area-Wide Planning Grant from the EPA, a Transportation Investment Generating Economic Recovery Grant from the U.S. Department of Transportation, and a Sustainable Community Challenge Grant from the U.S. Department of Housing and Urban Development. One of the sites, in Ranson, also earned an EPA Brownfield Cleanup Grant, and additional funds from the city, to diminish the presence of asbestos.
With this funding, the cities were able to work toward meeting the communities' redeveloping goals. The Commerce Corridor demonstrated how area-wide planners can successfully fund their corridor projects using federal grants.
Foundations
The foundations below contribute money for different charitable causes. Each foundation has different requirements that you will have to meet to receive funds. In addition, you must contact and/or apply to these organizations to receive funds. These funds will not need to be repaid but, as with a grant, there may be reporting requirements.
We've included direct language from the websites of various foundations.
Detroit (Equitable Community Development): “We support activities and investments for transformative changes that improve the conditions and prospects of Detroiters. We particularly seek to bolster–through project grants, operating support, and social investing–a range of community development organizations that authentically engage community on neighborhood-level change, as well as the community development systems and intermediaries that support them.”
American Cities: “Knowledge Exchange; National Intermediaries; Multi-City Initiatives; and Memphis & New Orleans”
Environment: “Transforming Key Urban Systems; Strengthening the Evidence Base and Developing Tools; and Building Capacity and Commitment of Urban Leaders”
Social Investment Practice: “We use the full spectrum of capital tools to address the financial barriers that confront communities of color and other underserved communities.”
Prince Charitable Trusts
Chicago (Environment): “Open Space and Natural Resources - [We offer] support for programs that preserve, protect, and enhance our lands and waterways. Youth and Environment - [We offer] support for environmentally-based youth development programs for under-served young people in Chicago, designed to cultivate the next generation of environmental leaders. Innovations in Urban Sustainability - [We offer] support for some of Chicago’s most forward-thinking and creative organizations working across sectors to address our city’s most pressing environmental challenges.”
Washington, DC (Environment): Land protection - "[We] preserve and protect the natural heritage of the Northern Virginia Piedmont. [We also] preserve and protect the rural quality of the Northern Virginia Piedmont and support smart growth and equitable development in the District’s urban core. Farming/new markets - [We] preserve farmland and promote the local farm economy, particularly in the Northern Virginia Piedmont, and urban farming in DC. Identify and train new farmers with a focus on sustainable practices. Improve connections between local, sustainable farmers and new markets. Clean Water - [We] promote and protect clean water in the Potomac and Anacostia Rivers and Chesapeake Bay watershed. Livable communities - [We] promote high-quality open space, with a focus on parks in the Anacostia River corridor, to encourage community building and support the health and well-being of residents in Wards 7&8. [We] empower and build the capacity of neighborhood-based organizations and community leaders to influence decision making related to a revitalized Anacostia River and adjacent parks. [We] support wealth-building and small business development for current residents in Wards 7&8 to ensure they have opportunities to remain and thrive in their communities.”
Newport, RI (Environment): “[We] preserve and protect open space and wildlife habitat; support smart growth and coordinated planning; preserve, protect, and restore Narragansett Bay; develop strategies for adapting to a changing climate; (i.e. sea level rise, extreme weather events); and protect farmland and sustainable, healthy food production.”
Nathan Cummings Foundation
Clean Economy: “Build Power - [We] engage broad and diverse constituencies, mobilize resources, and strengthen the movement by supporting frontline leaders advocating for a just and inclusive clean energy economy. Shift Narratives -[We] amplify religious, cultural, business, and community stories and demonstrate that resolving the climate crisis and a sustainable economy go hand in hand. Demonstrate Solutions and Change Market Behavior - [We] support models that deliver replicable and scalable climate and clean energy sector benefits concurrently with living wage jobs and inclusive wealth building opportunities.”
Racial and Economic Justice: “Increase Income - [We] improve working conditions for the most vulnerable communities – people of color, women, immigrants, and persons with justice-involved backgrounds – to ensure that all work is fair, safe, and equitable. Build Wealth - [We] build assets and wealth that lead families to greater economic security and mobility, advancing racial, gender, ethnic, and economic justice. Disrupt Mass Incarceration: [We] support critical interventions that reimagine our criminal justice system and overturn policies that disproportionately target low-income people, women, and communities of color. Reduce Debt - [We] support necessary interventions at the intersection of increasing income, building wealth, and disrupting mass incarceration — recognizing that the issue of debt (who is burdened and who pays) is central to efforts working to achieve greater economic and racial justice.”
The Roy A. Hunt Foundation has the following goals:
Climate and Energy: To reduce the consequences of climate change in the United States, primarily by increasing the affordability and use of cleaner and renewable energy sources, and educing demand for carbon-intensive energy sources and carbon-intensive goods and services.
Toxics and Waste: To reduce damage to the environment and human health caused by the manufacture, use, and disposal of consumer and industrial products. Typical strategies include green chemistry, sustainable design, sustainable manufacturing, and product stewardship.
Clean Water: To protect and restore the quality of freshwater, coastal, and nearby oceanic areas of the United States.”
Additionally, the Foundation notes the types of projects that it prioritizes below:
Community Development Geography: Grants are usually awarded to communities in "Dorchester, Roxbury, and their contiguous neighborhoods in Boston, MA; the Hill and East End in Pittsburgh, PA. The Foundation occasionally considers grants in other neighborhoods in those cities and for city-wide projects."
Community Development Strategies: "Proposals with clear and measurable objectives to serve those geographies through economic development, neighborhood revitalization, and/or partnerships. Economic development is the expansion of economic opportunity for low-income and disadvantaged people through workforce readiness and retention, entrepreneurship and business development, and wealth creation and asset development. Neighborhood Revitalization brings hope, vitality, and economic benefits to disadvantaged areas by renovating or building new community centers, commercial areas, and public amenities. Partnerships entail close collaboration with other funders with deep connections to those geographies and/or finding opportunities to align work with the Foundation’s Youth Violence Prevention Initiative. Finally, "all proposals should closely connect with a neighborhood-approved vision or plan and/or regional economic development plan.”
Sustainable Environments: "The Sustainable Environments program seeks to support communities of color and low-wealth communities to direct infrastructure and land use investment dollars, drive decision-making processes and design policy solutions, because those who are disproportionately impacted by environmental and climate inequity have the most powerful solutions to resolve these inequities."
Inclusive Economies: “The Inclusive Economies Program seeks to foster the creation of an inclusive and equitable economy in which people of color can maximize their potential as leaders, creators, and innovators across sectors.”
Environment: “The Foundation supports a variety of organizations seeking to protect the natural and human environment and to create a sustainable future. Areas of interest include, but are not limited to, energy and climate, environmental justice, clean drinking water, and urban sustainability (targeted primarily in the New York City region).”
Strengthening NY Communities Program: “The Foundation prioritizes the support of groups pursuing community organizing and advocacy strategies, through which limited Foundation dollars can leverage significant results.”
The Turner Foundation focuses on the following categories:
Land: “Build regional capacity for large-scale private land initiatives; recruit private landowners to engage in land and wildlife conservation initiatives including protecting and creating habitat and corridors; and support regional and national initiatives to protect corridors and buffer zones to adapt to a changing climate.”
Air: “Scaling clean energy technologies; promoting the use and availability of wildlife-friendly renewable energy sources; advancing the availability of affordable, clean energy for all; and encouraging business and investor engagement in this significant process”
Natural Water Infrastructure: “When we improve and expand water infrastructure, it is important to think beyond new treatment plants, pipes and pumps. The Foundation funds initiatives to expand natural infrastructure solutions-such as forests, wetlands, and urban parks - that provide multiple environmental, economic, and social benefits.”
Water Efficiency: “Water efficiency is the most cost-effective, immediate, and environmentally desirable means to address both short-term and long-term water shortages. The Foundation funds programs to advance sustainable use of our precious freshwater resources.”
Restoring Flows: “The Foundation supports efforts to maintain the vital stream flows needed by fish, wildlife, and people to secure a resilient and healthy future for all who rely on these resources.”
Watershed Organizations: “The foundation prioritizes support of watershed organizations within its priority geographies that advance stewardship of these resources. Supporting local caretakers and heroes is critical to clean water and healthy rivers.”
“The Kendeda Fund is a private grant-making foundation based in Atlanta, Georgia. We empower communities across the US and around the globe to develop solutions that increase equity, vibrancy, resourcefulness, and resilience. We also help underrepresented but trusted voices build and sustain social and community capital by supporting experienced, and emerging, leaders who have the vision to see problems differently and the courage to challenge conventional thinking. And we work to shift perceptions and disrupt the status quo by supporting projects that challenge social, economic, and ecological assumptions.”
The seven program areas include:
People, Place, and Planet: “Advance green building design, community-design, and public interest architecture. Champion community wealth building and sustainability strategies. Leverage innovation of cities to advance equity and sustainability.”
Girls’ Rights
Southeast Sustainability: "Advance ecological design in the Southeast through education, demonstration, and advocacy. Support community-based strategies across the Southeast to adopt ecological design best practices and policies. Push the boundaries of ecological design, especially with respect to accelerating the scale of adoption in the Southeastern United States.”
Sustainable Cities program: "Equitable climate action at the city scale must be led by the community and benefit the most vulnerable first. The program aims to have half of all commuter trips done by transit, walking, or biking by 2030, no new fossil fuel use in buildings by 2030), and 100% carbon-free electricity by 2035.”
“The Foundation supports building resilient, healthy communities by focusing on social and economic justice, regenerative organic agriculture, viable, healthy ecosystems, quality of life issues, development of local food systems, local energy security, and peace initiatives.”
Cities: "We are especially interested in fresh approaches to organizing, advocacy, and storytelling that mobilize new champions; expand public revenue and public-private finance; and advance the preservation and production of permanently affordable housing. For example, we aim to advance policies that help Detroit realize its potential as a resilient, just, and equitable city. At the same time, we are working to build local infrastructure and engagement to support, implement, and sustain those policies over the long term—and to steer continuing efforts to revive Detroit in ways that benefit all its residents.”
Program-related investments (PRI): “Ford has used PRIs to support social entrepreneurs and community development institutions in their efforts to preserve affordable housing, improve access to financial services and markets, create quality jobs, and advance arts and media. We also emphasize the use of PRIs as a catalyst for scaling private sector investment—for example, by reducing real and perceived risks in key impact sectors.”
Mission-related investments (MRI): “We seek to advance our mission by generating social impact. Our early MRIs are aimed at challenges that are central to our mission of disrupting inequality and focus mainly on private markets. In the United States, where there is a dire shortage of and desperate need for affordable housing, our investments seek to preserve the existing supply of rental housing and expand it—while supporting services that enhance residents’ quality of life.”
Private Investments
This section covers only a few of the potential opportunities open for community leaders to encourage private investment in a community revitalization program. Many private companies are looking for investment opportunities and are open to discussing ways for their funding to further your community revitalization program while also furthering their business objectives. This section should be viewed as the start of a creative process for attracting private investments rather than a comprehensive list. A good way to draw investors is to have a well-organized budget showing future growth opportunities for investors.
EB-5 Immigrant Investor Program: gives visas to foreign investors who lend funds for projects that create at least ten American jobs.
Bank of America: Made a four-year, $1 billion Commitment to Advance Racial Equality and Economic Opportunity
Have your project be sponsored by various companies (put banners with their names up where their developments will be/on construction).
Come prepared with a sketch of what your revitalized community will look like and how it will increase foot traffic.
Show how grants and tax credits will allow community revitalization without drawing too much from your underlying City/municipality budget. This will show investors that there is additional money for improvement that will not put you in debt.
This section covers financial opportunities in the DC area. The reader should use this to guide their efforts in determining what kind of financial opportunities may be available in their own local area.
Some DC incentives include:
Solar Renewable Energy Credits:
These are credits issued for every megawatt hour (MWh) of solar electricity generated and can be sold to electricity providers (DC rate is $480/MWH).
Loans to fund acquisition and predevelopment costs to nonprofit developers committed to the production, rehabilitation, and preservation of affordable housing.
EnergySmart Initiatives:
These initiatives help low-income customers reduce their energy bills through the purchase of renewable energy and increased energy efficiency.
Low-Income Home Energy Assistance Program: Provides bill payment assistance, energy crisis assistance, and weatherization and energy-related home repairs to income-qualified residents.
Affordable Solar Program: Free solar panel systems for income-qualified tenants and homeowners
Weatherization Assistance Program: Provides technical and financial assistance to help low-income residents reduce their energy bills through improvements in energy efficiency. [Federally Funded]
RiverSmart Washington (DC Initiatives to install green infrastructure):
Community Stormwater Solutions Grants: Awards start-up funding ($5,000- $20,000) for community-oriented projects aimed at improving stormwater management in the District.
RiverSmart Rewards Program: Provides discounts (up to 55%) of the Stormwater Fee and 4% of Clean Rivers Impervious Area Charge to residents, businesses, and property owners that install green infrastructure.
RiverSmart Communities Program: Rebates up to 80% of project costs of low impact development practices targeting multi-family residences, small locally-owned businesses, and houses of worship.
Stormwater Retention Credits: Issued to properties that manage stormwater voluntarily (can be sold to larger development sites)
Supermarket Tax Credit:
DC initiative that waives certain taxes and fees to supermarkets choosing to locate in underserved areas.
Office of the Deputy Mayor of Planning and Economic Development:
DC Revenue Bond Program: This program provides below market interest rate loans to help lower cost of funds available for capital projects.
New Communities Initiative: The initiative is designed to revitalize severely distressed subsidized housing and redevelop neighborhoods into vibrant mixed-income communities. The Initiative includes four neighborhoods in the District of Columbia: Barry Farm in Ward 8, Lincoln Heights-Richardson Dwelling in Ward 7, Northwest One in Ward 6, and Park Morton in Ward 1. The New Communities Initiative is funded through public bond financing that allows the District to leverage funding for development projects.
Great Streets Retail Grants: This is a commercial revitalization initiative to support existing small businesses, attract new businesses, increase the District’s tax base, create new job opportunities for the District residents, and transform emerging corridors into thriving and inviting neighborhood centers that are magnets for private investment. The initiative offers up to 50K Small Business Reimbursement Grants for those who want to improve their businesses.
Opportunities that may be expired
Clean Lands Fund: The Brownfield Revitalization Act establishes the Voluntary Cleanup Program. It provides for assistance with site assessments, as well as financial assistance in the form of both grants and loans, subject to the availability of funds in the Clean Lands Fund. These grants and loans (with rates 2% or under) are not to exceed 75% of the costs for completing an environmental assessment, cleaning, and redeveloping a contaminated property. Additionally, some properties may be eligible for a property tax reduction or the deferral or forgiveness of any delinquent property taxes.
Sustainability Planning and Analysis (Department of Energy and Environment (DOEE): The grantee should provide analysis and high-level planning in order to meet the goals of the Sustainable DC Plan using the guiding principles of the International Living Future Institute’s Living Community Challenge. The grantee will provide feasibility planning, analysis, and technical guidance to project teams and District agencies involved in planning large development parcels. The grantee should perform at least the following analyses: utility requirements; renewable energy potential; water usage; transportation needs; connection with or integration with the natural environment; integration of healthy materials; stormwater management; and land use. Using the analyses, the grantee should propose plans and strategies that can achieve the 2032 vision of a Sustainable DC.
Community Solar Demonstration Project: DOEE seeks eligible entities to develop a model for financing and building Community Solar Projects that can be replicated and used to catalyze the District’s community solar market. The model proposed by potential applicants must be financially sustainable and must clearly demonstrate how private properties can be used to transfer the benefits of renewable energy to low-income District residents. The amount available for the project is approximately $100,000.
The goal of a resiliency corridor is to revitalize a community area through methods designed to decrease future costs due to climate change, health hazards, and the contamination of water, air, and soil. This can be financed by the following methods:
Land leases: Government retains ownership of a project’s underlying land and leases it to the developer. e.g. Developers enter into a 99-year lease on the property with the municipality as a leaseholder (this defrays hard costs and allows the developer to minimize risks).
Subsidizing non-revenue projects/areas with revenue bearing projects/areas
Defray costs for developers who use due diligence, strategic planning, and promote community engagement
Direct municipal investments are incentives to encourage quicker development to reduce costs. e.g. Building public infrastructure next to potential private developments
Fast track government red tape (permitting, zoning, etc.)
Insurance Company funding (Insurance lowers costs through prevention/mitigation of risk)
Increased sales and/or property tax
Low-cost financing from state/city
Property assessed clean energy (PACE) financing is a means of financing energy efficiency upgrades, disaster resiliency improvements, water conservation measures, or renewable energy installations of residential, commercial, and industrial property owners
Create smaller more adaptive zones (small business development zone; anchor business retention zone, community facility/residential zone)
Create general bonds based on the increase in tax revenue between base value of the property and estimated future value of the property
Private Funding: Possible contributors include local Colleges/Universities; corporations interested in reversing blight and/or becoming an anchor tenant
Private/Public Partnerships: See if any private actors want to become part of the planning process rather than waiting until the plan is completed and trying to draw them in. This helps fill the gap between expected returns and market returns
Federal Funding: Possible contributors include via a Community Development Block Grant (CDBG); the US Economic Development Administration (EDA); the US Department of Agriculture (USDA); and the Environmental Protection Agency (EPA); US Department of Housing and Urban Development (HUD); US Department of Transportation (DOT)
Create self-sustaining aspects of the project
A good example of a resiliency corridor focused on preparing an area for climate change is San Francisco’s Islais Creek Southeast Mobility and Adaption Strategy. This strategy focused on collaboration from a bevy of interested parties to create “adaption pathways” which aim to protect a diverse residential and municipal industrial area from floods while also enhancing transportation, jobs, nature, and equity.
Another good example is the Spicket River Greenway in Lawrence, Massachusetts. This project revitalized a 2.5 mile stretch of the Spicket River through "ongoing cleanup, enforcement, education, and advocacy activities." Groundwork Lawrence, a community-based non-profit, collaborated with project partners to leverage $3.7 million in funds for the development of new parks and open space along the Spicket River. Their fundraising efforts tapped a variety of foundations like the Jessie B.Cox Charitable Trust, Essex CountyCommunity Foundation, ClipperShip Foundation, and Massachusetts Environmental Trust. Read more about the project here and Groundwork Lawrence's other work here.
The video below highlights the success of the Spicket River Greenway project.
Mixed-use spaces. For example, plan your revitalization plan around one large, mixed-use space with an anchor tenant. Other businesses will come in when the anchor tenant is successful.
Stores catering to community members (Urban stores in urban areas)
Transit centers
Affordable housing
Subsidize your Anchor tenant. This commitment and future success will bring in other businesses
